Some pharmacies are on the brink of closing down as a result of the constant slashing of medicine prices, according to Mario Debono, spokesman for the Chamber of Small and Medium Enterprises – GRTU.
“The government must stop attacking the viability of pharmacies,” he insisted, accusing the government of “duplicity” as it cut the prices of another 38 medicines yesterday.
Mr Debono argued that, by reducing prices, the government was also cutting the fixed profits of pharmacies, potentially resulting in the smaller villages ending up without a pharmacy.
Pharmacies can only make a fixed profit of 16.6 per cent on each medicinal product, so if prices go down, so do their profit margins.
Added costs due to new standards of temperature control and abnormally high wage demands by pharmacists were exacerbating an already precarious situation, he said.
Instead of cutting the price of branded medicines simply to catch votes and win a short-term political victory, the government should help promote generic medicines that are cheaper and just as effective as branded ones, Mr Debono said.
Most popular branded medicines have lost their patents five or 10 years ago and are now competing with cheaper alternatives that are also on the market but not so popular with the public.
“Doctors continue to prescribe brand names and people continue to expect these medicines for free,” Mr Debono said.
He stresses that the best solution to control prices would be to introduce a system of reimbursement which is used in the rest of the EU, whereby the government pays for all medicines but with a system of means-testing.
“In Malta, while some essential items are given out for free by the government, patients have to pay for the rest. Instead of paying for them, the government is forcing private industry to accept a payment it dictates.”
He called for “a long overdue discussion” on how to introduce reimbursement. “If the government reimburses all medicines, then it should, along with the service providers, decide on the reimbursement price.” However, reimbursement must also take into consideration the fact that people who are well-off can afford their own medicines.
“We are lucky this system is used, in various forms, around the EU, except Cyprus where is it being discussed. So we can see which system is best for us and tailor it to our needs.”
Calling for what is effectively a bailout for pharmacies that are not making enough profits to survive, he notes pharmacies are subsidising about 20 per cent of the Pharmacy of Your Choice scheme by providing services which were not factored in as costs.
If the government continues to act alone, Mr Debono said, the GRTU would have to take the dispute to EU level because it was amply clear that all EU laws and guidance mechanism only gave the government the power to control medicine prices it bought or reimbursed.